Create An Ad
English
Bidding Methods on TikTok Ads-CPC/oCPC/CPM/CPV
Bidding is an important part of the overall ad creation process. There are various types of bidding methods available that depend on your overall strategy and objectives. 

Figuring out which method is right for you can be a challenge, but it is important to take the time to understand all methods before running a campaign. 

This article provides you a basic overview of each method giving you the knowledge you need to start running TikTok Ads.

Currently, TikTok Ads provides 4 different bidding methods:
  • Cost per Click (CPC)
  • Optimized Cost per Click (oCPC)
  • Cost per mille/thousand (CPM)
  • Cost per Thousand Views (CPV)

CPC

This means your bid is the cost you are willing to pay per click. The system will deliver your ads to users who are most likely to click them at a cost that is as close to your bid as possible.

Calculation: Total cost / Total click
Billing Event: Charged by click
Applicable Advertising Object: Traffic, App Install, Conversion

oCPC

This means your bid is the cost you are willing to pay per result. The system will deliver your ads to users who are more likely to take the action you want at a cost that is as close to your bid as possible. 

Note: Billing for oCPC is based on clicks, not results.

For example, if your marketing goal is to drive more users to your app page to intall your gaming app, when using the oCPC bidding method, the system will deliver your ads to those who are more likely to install the app, but will charge you based on clicks to your app page.

Calculation: Total cost / Total result
Billing Event: Charged by click
Applicable Advertising Object: App Install, Conversion

CPC vs. oCPC

  1. The billing event for both CPC and oCPC is clicks. The difference lies in the system's optimization target when delivering your ads. 
    1. For CPC, the system optimizes delivery to get more clicks.
    2. For oCPC, the system optimizes delivery to get more conversions (e.g. App download, purchase on landing page, etc.).
  1. When creating your ad groups for CPC and oCPC, how you set your bill will be different: 
    1. For CPC, bid for each click.
    2. For oCPC, bid for each conversion.

CPM

This means your bid is the price you are willing to pay for one thousand impressions. The system will deliver your ads to get the most exposure and reach to as many customers as possible within your budget.

Calculation: (Total cost / Total impressions) * 1,000
Billing Event: Charged by impression
Applicable Advertising Object: Reach (currently in Beta and only available for certain accounts), Traffic

CPV

(currently in Beta and only available for certain accounts)
This means your bid is the price you are willing to pay for per one thousand 6-second or 2-second video views. The system will deliver your video to get as many views as possible within your budget.

Calculation: Total cost / Total video views * 1000
Billing Event: Charged by 2-second video views, 6-second video views, or video completion
Applicable Advertising Object: Video View (currently in Beta and only available for certain accounts)